[California] The future is uncertain for Lyft and Uber

On August 21 a preliminary injunction almost closed down ride-hailing companies in California and their future remains uncertain. On August 20, Lyft and Uber won a last-minute reprieve from the injunction that would have forced them to make drivers company employees. If the delay was denied, Lyft and Uber intended to cease offering rides in California and to keep cars off the road until after the November vote on Proposition 22. (Link via original reporting)

The actions were prompted by a lawsuit by the state of California and the city attorneys of San Francisco, San Diego and Los Angeles which contends that Lyft and Uber are dodging California’s gig work law (AB5) by maintaining drivers as independent contractors. The state won a temporary injunction that could have forced driver reclassification as early as Friday but an appeals court agreed to stay the injunction until it hears Lyft and Uber’s appeal. San Francisco Chronicle addresses questions about the current situation and its potential repercussions. (Links via original reporting) 

On August 21 a preliminary injunction almost closed down ride-hailing companies in California and their future remains uncertain. On August 20, Lyft and Uber won a last-minute reprieve from the injunction that would have forced them to make drivers company employees. If the delay was denied, Lyft and Uber intended to cease offering rides in California and to keep cars off the road until after the November vote on Proposition 22. (Link via original reporting)

The actions were prompted by a lawsuit by the state of California and the city attorneys of San Francisco, San Diego and Los Angeles which contends that Lyft and Uber are dodging California’s gig work law (AB5) by maintaining drivers as independent contractors. The state won a temporary injunction that could have forced driver reclassification as early as Friday but an appeals court agreed to stay the injunction until it hears Lyft and Uber’s appeal. San Francisco Chronicle addresses questions about the current situation and its potential repercussions. (Links via original reporting)